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Performance Performance ManagementManagement ConferenceConference(ORS/ORF)(ORS/ORF)

January 21, 2004January 21, 2004

http://www.nih.gov/od/ors/od/oqm/pm/index_pm.htm

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WelcomeWelcome

Customers ORS Advisory Committee members ORS/ORF PM teams ORS/ORF personnel NIH sponsors/colleagues Visitors

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Mr. Steve FiccaMr. Steve FiccaAssociate Director for Research ServicesAssociate Director for Research Services

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Purpose of Performance Purpose of Performance Management (PM)Management (PM) Purpose:

Institutionalize a process to continually improve the performance of the services delivered to the NIH.

Demonstrate the degree to which the ORS/ORF service providers are adding value

Identify new ways to improve service performance even further

President’s Management Agenda – Budget and Performance Integration, and Competitive Sourcing

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Context: Some FY03-04 Business Context: Some FY03-04 Business RealitiesRealities

Competitive sourcing (A-76) New organization (ORFDO) Reorganization within both ORS and ORF Security Hiring freeze

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Number of Improvements by TypeNumber of Improvements by Type

OQM developed systematic method to gather and quantify improvements during FY03

24 quantifiable improvements achieved to date: Provide Print and Digital Media Services reduced

their space by several 1,000 sq ft for estimated cost avoidance of $200k

Provide Library Services has maintained the unit cost of an “information unit” while the number of units rose by 35%

Conduct Collaborative Research had a 16% increase in the number of professional presentations delivered

Provide Basic Animal Life support had a 113% increase in animal holding capacity through building renovations and purchasing new cages

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Number of Improvements by TypeNumber of Improvements by Type

• Provide Animal Research Services had an 18% increase in ICU utilization through improved record keeping

• Provide Administrative Services reduced FOIA cycle time by 35 days through enhancing staff competencies

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Number of Published Service Group Success Stories

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Number of Published Service Group Number of Published Service Group Success StoriesSuccess Stories

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Mr. Antonio R. RodriguezMr. Antonio R. RodriguezAssistant Director for Quality Management Assistant Director for Quality Management Office of Research ServicesOffice of Research Services

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Program Area X

X11 X12

X13 X14

DS

SG X1

ORS Service HierarchyORS Service Hierarchy

Service Hierarchy Discrete services (DS) Service Groups (SG) Program Areas (PA)

Y11 Y12

Y13

SG Y1

Y21 Y22

SG Y2

Program Area Y

DS DS

X21 X22

SG X2

DS

X23

12*Adapted from “Planning Is Dead, Long Live Planning, “ Jos. Fuller, Across the Board, March 1998

Today’s Agencies Are Expected Today’s Agencies Are Expected to Be:to Be:

• Competitive (sourcing)

• Accountable

• Customer-friendly

• Fiscally responsible External world is highly unstable so planning systems must deal

with uncertainty1. Strategy is a Hypothesis

2. Strategy is a Dynamic Process

3. Strategy is Everyone’s Job

4. Organizations are systems that must sense, experiment, learn, and adapt

5. Strategy is an articulation of the direction we want to take an organization

Why do we need to do this? Why do we need to do this?

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PMPM Overall Process Overall Process

Day-to-day(PM Framework)

Day-to-day(PM Framework)

On-going findings & recommendationsOn-going findings

& recommendations

On-going implementation/

improvement

Business Plans

(Budget/ABM)

Business Function

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Performance Management Plan (PMP)

DS3: Perform animal model preservation and characterization

DS2: Conduct animal health surveillance

DS1: Conduct animal diagnostic services

Discrete Services

Division Approval/Date: Associate Director Approval/Date:

DS4: Provide clinical animal research services

Provide animal research services

Service Group

Service Strategy

Animal Research Services facilitates the NIH intramural research effort by providing cost-effective, reliable, and specialized research support services delivered by an experienced, responsive, and professional staff with a reputation for high quality work.

Value Proposition

Team Leader

To facilitate the NIH intramural research effort, we conduct diagnostic evaluations, monitor animal health status, perform surgery, provide intensive care, operate a pharmacy, and preserve and evaluate animal models for future research use. We will focu

Strategy Description

Team Members

Dr. James Crowell and Dr. Charmaine Foltz

Dr. John Bacher, Dr. Michael Eckhaus, Dr. Myrna Mandel, Fran Benedetti, Karen Sillers, Thom Spencer, Dr. William Rall, Dr. Carl Hansen, Pat Schmidt, Dr. Tanya Burkholder

Operational Excellence

Customer Intimacy

Product Leadership

Growth

Sustain

Harvest

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Objective Description MeasureFY 03

TargetFY04

TargetFY05

TargetInitiative Owner

C1a: ORS Customer Scorecard ratings.

approved phenotyping survey

improvement in ratings on comparable discrete services surveyed in FY02

TBD In FY03, customize ORS Customer Scorecard for use with Principal Investigators. Obtain approvals (i.e., OQM) in FY03. Conduct survey in FY04.

Crowell and Foltz

C1b: Number of complaints and commendations by category.

pilot results TBD TBD Develop and pilot customer log in FY03. Refine log for continued use in FY04.

Crowell and Foltz

C2a: For each discrete service, number of customer requests by type.

pilot results TBD TBD Develop and pilot customer log in FY03. Refine log for continued use in FY04.

Crowell, Foltz, and discrete service reps

C2b: For each discrete service, number of customer requests addressed.

pilot results TBD TBD Develop and pilot customer log in FY03. Refine log for continued use in FY04.

Crowell, Foltz, and discrete service reps

Cus

tom

er

C1: Increase customer satisfaction

We will foster a relationship with our customers that increasingly promotes our reputation for high quality work, repeat business, commendations, and minimal complaints. We will ask customers for their opinion using the ORS Customer Scorecard customized

C2: Provide the right mix of specialized research support services

We will offer our customers the right mix of the services they need to meet the changing and emerging research needs of the NIH intramural research community. Each discrete service will maintain a log of customer requests that will help us identify emerg

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Performance ManagementPerformance ManagementRoles and Responsibilities Roles and Responsibilities

ORS Executive Board (ORSEB)ORS Management Council (ORSMC)PM Team LeaderPM Team MembersOffice of Quality Management (OQM)OQM Sponsored Consultants

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What Do Our Customers Really What Do Our Customers Really Want?Want?

(Outcome or “End -State”)

What are we really trying to accomplish as a Service Group?

What outcomes are we offering customers with our Service Group /Discrete Service offerings?

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Customers Needs

Satisfied

Innovation Cycle

“Innovation”

DevelopServices

Identify Customers

/CreateServiceOffering

Operations Cycle

“Operational Excellence”

Communicate the Services

Deliver the Products / Services

Service Cycle

“Service Quality”

Service the

Customer

Customers Needs

Identified

Generic Value Chain ModelGeneric Value Chain Model

Internal Business ProcessInternal Business Process

EXAMPLE

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What is Your Value Chain?What is Your Value Chain?

How do we get new work? Where does it come from?

What processes do we need to perform really well?

How do we complete the work?

How do we deliver it to our clients/ customers?

How can we improve our processes to meet attributes identified in the VP?

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PHARMACY

VRP Pharmacy Vendors ProcurementIC Customer

Place Order Review Order

Human,Veterinary, or

ControlledDrug

OrderedVariousVendors

Order Placed toContracted Vendor

Complete DEA-22Form

ProcessRequest

ResearcherReceives Drug

PlacesRequest

Human orVeterinary

Log of Usage

Receipt sent toPharmacy for

Tracking Purposesand Log isDeveloped

Receipt sent toProcurement

ReceivedReceives Order

and Log forTracking

Order Placedto Vendor

User must haveDEA Registrationand CompletedDEA 22 Form

Category 1Controlled

DrugRequest

VeterinaryDrug

Veterinary

HumanHuman Category 2 Drug

Human Drug

Human Category3-5 Drug

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PathologyPathology::Case Completion TimeCase Completion Time

Note: Average turnaround time has significantly improved in FY02

FALSE

if 2/3 or more of the moving ranges are below mean moving rangeFALSE

Moving Range: Pathology

0

5

10

15

20

25

30

Quarter/Year

Mo

vin

g R

an

ge

(m

R)

Moving Range 7.00 8.00 8.00 16.00 11.00 5.00 13.00

Q2 FY01 Q3 FY01 Q4 FY01 Q1 FY02 Q2 FY02 Q3 FY02 Q4 FY02

UCL = 25.1

mR = 7.7

Individual Values: Pathology

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30

40

50

60

70

80

Quarter/Year

Ind

ivid

ual

Val

ues

(X)

average # days 50.00 57.00 49.00 57.00 41.00 30.00 25.00 38.00

Q1 FY01 Q2 FY01 Q3 FY01 Q4 FY01 Q1 FY02 Q2 FY02 Q3 FY02 Q4 FY02

Mean = 53.2

LCL = 32.9

UCL = 73.6

Signal

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What Improvements Can Be Made in What Improvements Can Be Made in Our Internal Processes?Our Internal Processes? What do we need to do

better to make our clients/ customers happy?

Can we be more efficient or more effective at what we do?

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Learning & GrowthLearning & Growth

Typical Learning & Growth ObjectivesTypical Learning & Growth Objectives

Skills & CompetenciesKnowledge &

Technology AssetsClimate for

Action

• Strategic skills

• Training levels

• Core competencies

• Strategic technologies

• Strategic databases

• Experience capture

• Best practices

• Patents, copyrights

• Leadership

• Accountability / empowerment

• Alignment

• Results Oriented

• Teaming

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What do our employees need to What do our employees need to help us achieve our goals?help us achieve our goals?

What Skills Need to be Addressed?

What will the Knowledge and skills needs be over the next 5 years?

Do we need to train/recruit/contract out?

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Discrete Service

Unit Definition

# Units Total Direct Cost Unit Cost

Perform veterinary surgery

# of surgeries 1,590 $899,530 $566

Provide pathology services

# of animals submitted

2,498 $1,068,873 $428

Operate acute and intensive care animal service

total # tests, tasks, and procedures

18,171 $940,766 $52

Conduct laboratory services

# of submission (bacteriology)

40,362 $1,051,406 $26

Provide veterinary pharmacy services

# Items 20,954 $144,402 $7

Conduct animal health surveillance

# submissions (serology)

25,411 $1,736,471 $68

Unit CostUnit Cost

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What is in it for the NIH and What is in it for the NIH and ORS?ORS?

• Systematic improvement of performance

• Information for Decision making• Evidence of performance levels• Justification for resource needs• Greater personnel involvement

(decision-making, ownership, pursuing improvement)

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Performance Management Performance Management and A-76and A-76

Better Performance Data Better PWS Better PWS, better:

Competition (e.g., less room for confusion)

Better QASP and overall management of the contract

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Every function, before facing an A-76 competition, should:

Identify the boundaries of its “span of contribution / value chain,” and manage it, cross-functionally

Continually find and implement better ways to do the work

Evaluate every position before filling it, and determine whether the work should be contracted out

Must be as efficient and effective as possible, so future MEOs do not have to be drastically different to win

Performance Management and A-76Performance Management and A-76 (cont.)(cont.)

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Data / Results Data / Results

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Percent of Service Groups with Percent of Service Groups with completed PMPs completed PMPs (as of Quarter 1 FY04)(as of Quarter 1 FY04)

Value Proposition

Strategy Description

Objectives Measures Targets

ORS - 33 teamsNumber of Teams 27 27 28 28 28

Percentage 82% 82% 85% 85% 85%

ORF- 13 teamsNumber of Teams 10 10 9 9 8

Percentage 77% 77% 69% 69% 62%

Overall - 46 teamsNumber of Teams 37 37 37 37 36

Percentage 80% 80% 80% 80% 78%

Percent of Teams with PMPs Reviewed Percent of Teams with PMPs Reviewed by Program Managementby Program Management (as of Quarter 1 (as of Quarter 1 FY04)FY04)

ORS Total Number of Teams 33 PMP’s Reviewed by Management 24

73% ORF

Total Number of Teams 13 PMP’s Reviewed Management 9

69% Overall

Total Number of Teams 46 PMP’s Reviewed by Management 33

72%

Percent of service groups with ongoing Percent of service groups with ongoing data collection data collection (as of Quarter 1 FY04)(as of Quarter 1 FY04)

ORS Total Number of Teams 33 Teams with ongoing data collection 26

79% ORF

Total Number of Teams 13 Teams with ongoing data collection 6

46%

Overall Total Number of Teams 46 Teams with ongoing data collection 32

70%

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Relationship Between Total Hours Spent with Relationship Between Total Hours Spent with Service Groups and PMP Implementation Progress Service Groups and PMP Implementation Progress (as of Quarter 1 FY04)(as of Quarter 1 FY04)

Note 1: Total hours include both hours spent by OQM and Consultants for all effort codes. Team progress is defined as percent completion of 14 key elements of the 2003 PM process

Note 2: Total Hours do not include hours spent on OQM’s own PMP (Provide quality, performance, and organizational improvement services

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 10 20 30 40 50 60 70 80 90

Total Hours

% P

rog

res

s

Low HoursLow Progress

Low HoursHigh Progress

High HoursHigh Progress

High HoursLow Progress

Mean Progress = 65%

Mean Total Hours = 64.9

Correlation = 0.52

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Number of OQM data analyses services Number of OQM data analyses services provided provided (as of Quarter 1 FY04)(as of Quarter 1 FY04)

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Types of Data Analyses Provided: Assisted DFP in developing benchmark study Analyzed cycle time data for Department of

Veterinary Resources (DVR) nutrition program Analyzed cycle time data for DVR pharmacy

program Analyzed Process data for DVR histopathologies With Division of Facilities Planning (DFP),

developed large scale project scheduling system to track project status

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Types of Data Analyses Done Types of Data Analyses Done (Cont.)(Cont.)

Analyzed processing time data for DVR Comprehensive full panels

Analyzed processing time data for DVR routine and rush PCR’s

Analyzed data on number of design & submittal reviews for Department of the Fire Marshall (DFM) new permit process

Analyzed five years of emergency response (time) data for Fire Department

Documented existing process to maintain JCAHO accreditations at the Clinical Center and maintain AALAC accreditations in NIH animal facilities.

 Developed and administered customer surveys for 22 ORS/ORF Service Providers

• Customer Satisfaction Surveys Developed and Administered in FY03:

•Perform master and facilities planning

•Maintain roads, parking areas, and landscaping

•Manage and administer worksite enrichment programs – vendor survey

•Manage and administer worksite enrichment programs – climate assessment

•Provide security guard services

•Manage solid waste streams

•Maintain safe working environment – radiation safety

•Maintain safe working environment – biological safety cabinets

•Maintain safe working environment – occupational medical services

•Maintain safe working environment – pest management

•Procure and deliver animal product – animal procurement

•Procure and deliver animal product – animal transportation

•Provide animal research services – phenotyping

•Provide library services – translations

Number of OQM data analysis service Number of OQM data analysis service provided provided (as of Quarter 1 FY04) (as of Quarter 1 FY04) con’t.con’t.

Conclusion Conclusion andand

What Should Happen Next?What Should Happen Next?

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Conclusion and Next Steps Significant progress achieved in FY03 in spite of

“additional” challenges (resource intensive) We need to raise the performance bar:

Every service group should contribute at least one verifiable “bottom-line” improvement such as evidence of:

Higher customer satisfaction Savings Cost avoidance Shortened cycle times Improved QOWL

• ORS Program Areas should have their own PMP and scorecards (cross-functional/service groups)

• ORF should continue to refine higher-level PMPs and scorecards

• ORS and ORF should report organization-wide performance results on an annual basis

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Mr. Leonard TaylorMr. Leonard TaylorActing Director of Office of Research Acting Director of Office of Research Facilities, Development and OperationsFacilities, Development and Operations

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Break

Concurrent Sessions Start at 9:15

ORS in rooms E1 and E2

ORF in room D